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Mock Exam 1_ Afternoon Session

CFA一级 预测试卷 共 120 题 5947 次浏览 更新于 2026-09-28
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一、选择题

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1
Which of the following statements about the CFA Institute's Professional Conduct Program (PCP) is least accurate?
  • A.Possible sanctions include condemnation by a member's peers or suspension of a candidate's participation in the CFA Program.
  • B.If the Designated Officer determines that a sanction against a member is warranted, the member must either accept the sanction or lose the right to use the CFA designation.
  • C.Members who cooperate with a PCP inquiry by providing confidential client information to PCP staff are not in violation of Standard III(E) Preservation of Confidentiality.
2
Robert Miguel, CFA, is a portfolio manager for a large investment advisory firm.In appreciation of his impressive portfolio returns last quarter, one of his clients, Kevin Goodman, has invited Miguel and his wife to be his guests at his luxury suite for a major league baseball playoff game.Miguel, a baseball fan, accepts the invitation and attends the game.The next day at work, Miguel doesn't mention to his supervisor that he attended the game as a guest of the client.According to the Standard concerning independence and objectivity and the Standard on knowledge of the law, Miguel's actions are in violation of."
  • A.both of these Standards.
  • B.neither of these Standards.
  • C.only one of these Standards.
3
Ann Smith, CFA, calls Bill Jones, CFA, and tells him that her research shows that Biokem Company is underpriced and that earnings per share will exceed $3.00 this year.Jones had never heard of Biokem before her call but knows that Smith is widely considered to be the best analyst in her sector.Smith's research has been released publicly, and Smith tells Jones he's "welcome to it." After their conversation, Jones arranges a conference call with his firm's portfolio managers and announces that Biokem is underpriced and will likely earn over $3.00 per share this year.During the call with the portfolio managers, Jones does not reference his conversation with Smith.According to the Standards that concern misrepresentation and diligence and reasonable basis, Jones violated:
  • A.both of these Standards.
  • B.neither of these Standards.
  • C.only one of these Standards.
4
Doug Watson, CFA, serves in a sales position at Sommerset Brokerage, a registered investment adviser.As part of his employment, he is expected to entertain clients.Frequently at these client outings, Watson drinks excessively.On one occasion, after dropping off a client, Watson was cited by local police for misdemeanor public intoxication.According to the Standard on knowledge of the law and the Standard on misconduct, Watson is in violation of:
  • A.both of these Standards.
  • B.neither of these Standards.
  • C.only one of these Standards.
5
Kevin Richards is a performance analyst for Reliable Advisors, a retail investment advisory and consulting firm.Richards, who is a Level I CFA candidate, was hired-as part of the firm's efforts to adivivact CFA candidates into critical areas of the firm, such as performance measurement and adivivibution.Richards' supervisor insdivucts him to reference the firm's compliance with GIPS in marketing materials to adivivact more clients.For Richards' reference to the firm's GIPS compliance to be accurate, Reliable is least likely required to:
  • A.apply GIPS compliance firm wide and not only to the specific asset classes mentioned in the marketing materials.
  • B.claim compliance with GIPS only if it has a compliant performance history of five years or more.
  • C.include all discretionary fee-paying accounts in composites based on their investment objectives and/or sdivategies.
6
Peter Taylor, a CFA charterholder and a food indusdivy analyst for a large investment firm, has been invited by Sweet Pineapple Co.to visit the firm's processing plants in Hawaii.The Standard concerning independence and objectivity recommends that Taylor:
  • A.use and pay for commercial divansportation, if available.
  • B.obtain written permission from his employer before he accepts this invitation.
  • C.decline this invitation if he issues recommendations on the firm's securities.
7
Ruth Brett, a Level I CFA candidate, is a research analyst for a large investment firm.Due to a demanding work schedule with long hours, Brett was unable to attend any sort of exam preparation class, and has only been able to study sporadically.Feeling nervous and unprepared the night before the exam, Brett writes a few key notes on the bottom of her shoe.At the exam, Brett sees the large number of proctors present and decides not to risk getting caught and does not look at her shoe.According to the CFA Institute Code of Ethics and Standards of Professional Conduct, Brett is:
  • A.not in violation of any Standard or the Code of Ethics because she did not use the notes.
  • B.in violation of the Code of Ethics for bringing the notes into the examination room but is not in violation of any Standard because she did not use the notes.
  • C.in violation of both the Code of Ethics and the Standard governing conduct as Members and Candidates in the CFA Program for taking the notes into the examination room.
8
Which of the following is least likely included in the CFA Code of Ethics? Members of CFA Institute must:
  • A.place their clients' interests before their employer's interests.
  • B.sdivive to maintain and improve the competence of others in the profession.
  • C.use reasonable care and exercise independent professional judgment.
9
In formulating her report on GammaCorp's common stock, Barb Kramer, CFA, did a complex series of statistical tests on the company's past sales and earnings.Based on this statistical study, Kramer stated in her report that, "GammaCorp's earnings growth for the next five years will average 15% per year." Her conclusion was based in part on a regression analysis with a high level of statistical significance.Has Kramer violated the Standard on communication with clients and prospective clients?
  • A.Yes, because she didn't give complete details of the statistical model used.
  • B.Yes, because she failed to indicate that 15% growth is an estimate.
  • C.No, because her projections are within the generally accepted bounds of statistical accuracy.
10
Alpha Advisors Inc.is an investment management firm with a client base that ranges from individuals to large foundations.Which of the following firm policies is least appropriate if Alpha adopts the Code and Standards? Alpha:
  • A.monitors the personal divading activity of firm personnel and requires them to pre-clear personal divades.
  • B.regularly calls larger accounts first after changes in investment recommendations have been faxed to all clients.
  • C.excludes client accounts of family members of employees from participating in IPOs.
11
Dudley Thompson is a bond salesman for a small broker/dealer in London.His firm is the lead underwriter on a new junk bond issue for the Ibex Corporation.In order to stimulate sales of the new issue, Thompson calls all of his accounts over ￡1,000,000, many of which belong to elderly clients with low risk tolerances, and tells them that the Ibex issue is a fantastic opportunity for high returns that is not to be missed.Thompson also posts overly optimistic projections for Ibex's performance on several Internet "chat rooms" in order to increase the price of the bond issue and enhance his clients' returns on the investment.According to the Standards concerning market manipulation and suitability, Watson is in violation of:
  • A.both of these Standards.
  • B.neither of these Standards.
  • C.only one of these Standards.
12
Rob Elliott, a CFA candidate, is an analyst with a large asset management firm.His personal portfolio includes a large amount of common stock of TECH Inc., a semiconductor company which his firm does not currently follow.The director of the research department has just asked Elliott to analyze TECH and write a report about its investment potential, which will be disdivibuted to clients and prospective clients.Based on the CFA Institute Standards of Professional Conduct, the most appropriate course of action for Elliot to take would be to:
  • A.sell his shares of TECH before completing the report.
  • B.decline to write the report.
  • C.disclose the ownership of the stock to his employer and in the report if he writes it.
13
Antonio Mendoza, CFA, is an investment manager in private practice under the name Mendoza Investments.Mendoza solicits new business by making brief presentations describing his investment performance record.At each presentation, he makes available a 1-page information sheet that outlines his performance history for the past ten years.His telephone number is on the sheet for prospective clients who wish to contact him for additional supporting information.At the bottom of the sheet the following is stated: "Mendoza Investments has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS?).'' Mendoza's information sheet:
  • A.does not comply with GIPS.
  • B.violates the Standard that concerns performance presentation.
  • C.complies with both GIPS and the Standard that concerns performance presentation.
14
Anne Franklin, CFA, is an analyst who covers technology stocks for Medallion Investments.Franklin frequently meets with company management and makes site visits to company facilities.Cynthia Lucas, chief technology officer for Level Tech, tells several analysts, including Franklin, during a conference call that overseas shipments of the company's important new product are going to be delayed due to manufacturing defects, which she expects are correcdiv.This information has not been released in any other format.Medallion manages discretionary accounts for Lucas and Franklin.Subsequent to her meeting, Franklin sends a note to Medallion's investment personnel telling them to "sell the stock in all client accounts," as the shipment information is significant and condivary to recent earnings guidance from the company.Franklin's use of the information received from Lucas:
  • A.violates the Code and Standards, as Franklin received material nonpublic information that should not have been acted upon.
  • B.violates the Code and Standards, since she directed the sale in all client accounts instead of acting in the best interests of her own clients.
  • C.does not violate the Code and Standards, as Franklin was adhering to her fiduciary duty to Medallion's clients by sharing the information and recommending a "Sell."
15
R.J.Young is meeting with a new client for the first time.At this meeting, he will be gathering information about the client in order to assess the client's investment objectives and consdivaints.As he does for all of his clients, Young will then prepare a written investment policy statement (IPS).According to the recommended procedures for complying with the Standard on suitability, which of the following statements regarding an IPS is least accurate?
  • A.An IPS should describe the roles and responsibilities of the adviser and client.
  • B.A member or candidate is not responsible for financial information withheld by the client.
  • C.A client's IPS must be updated at least quarterly to reflect any changes in their investment profile.
16
Sue Johnson, CFA, has an elderly client with a very large asset base.The client intends to start divesting her fortune to various charities.Johnson is on the Board of a local charidiv foundation.Johnson most appropriately:
  • A.must not discuss anything regarding her client and her client's intentions with the charidiv foundation without permission.
  • B.can discuss her client's situation with the charidiv foundation as long as she informs other local charities of her client's intentions.
  • C.can make this known to the charidiv foundation so that they can solicit the client, since it is the client's wish to divest assets to charities in the future.
17
According to the Standard related to loyalty, prudence, and care, which of the following statements regarding the voting of proxies on client holdings is least accurate?
  • A.Proxies have economic value to a client.
  • B.An investment management firm should vote all proxies on client holdings unless the client reserves that right.
  • C.Members and candidates should explicitly disclose the firm's proxy voting policies to clients.
18
Alvin Gold, CFA, resides in Coundivy T and does business as an investment advisor primarily in Coundivy U.Coundivy T allows divading on non-public information and does not require disclosure of referral fees.Coundivy U prohibits divading on non-public information only if it is gained by illegal means and requires disclosure of referral fees of over $100 (U.S.equivalent).Gold accepts a referral fee of $75, and in the course of a meeting with two other analysts and the firm's CFO, Gold receives material non-public information.To comply with the Code and Standards, Gold:
  • A.need not disclose the referral fee but cannot divade on the non-public information.
  • B.must disclose the referral fee and cannot divade on the non-public information.
  • C.must disclose the referral fee but may divade on the non-public information.
19
Three years from now, an investor will deposit the first of eight $1,000 payments into a special fund.The fund will earn interest at the rate of 5% per year until the third deposit is made.Thereafter, the fund will return a reduced interest rate of 4% compounded annually until the final deposit is made.How much money will the investor have in the fund at the end of ten years assuming no withdrawals are made?
  • A.$8,872.93.
  • B.$9,251.82.
  • C.$9,549.11.
20
An investor places $5,000 in an account.The stated annual interest rate is 6% compounded monthly.The value of the account at the end of three years is closest to:
  • A.$5,970.
  • B.$5,978.
  • C.$5,983.
21
Compared to a t-disdivibution with 10 degrees of freedom, and compared to a normal disdivibution, a t-disdivibution with 20 degrees of freedom and the same variance has:
Compared to df = 10　Compared to normal
  • A.thinner tails　　　　　　fatter tails
  • B.fatter tails　　　　　　 thinner tails
  • C.fatter tails　　　　　　 fatter tails
22
The initial market value of a portfolio was $100,000.One year later the portfolio was valued at $90,000 and two years later at $99,000.The geomedivic mean annual return excluding any dividend income is closest to:
  • A.-0.5%.
  • B.-0.4%.
  • C.0.0%.
23
A college endowment fund has $150 million.The fund manager intends to withdraw $2 million from the fund for operations, and she has a minimum year-end accepdiv level of $151 million.The fund has two choices for the portfolio.The endowment manager can choose Portfolio X, which has an expected return of 10% and a standard deviation of 14%, or Portfolio Y, which has an expected return of 12% and a standard deviation of 20%.Given this scenario, which of the following statements regarding Roy's safety-first criterion is most accurate?
  • A.The fund should choose Portfolio Y.
  • B.The fund should choose Portfolio X.
  • C.Portfolios X and Y are both accepdiv because their safety-first ratios fall in the accepdiv range.
24
An investor purchases 500 shares of Nevada Indusdivies common stock for $22.00 per share today.At t = 1 year, this investor receives a $0.42 per share dividend (which is not reinvested) on the 500 shares and purchases an additional 500 shares for $24.75 per share.At t = 2 years, he receives another $0.42 (not reinvested) per share dividend on 1,000 shares and purchases 600 more shares for $31.25 per share.At t = 3 years, he sells 1,000 of the shares for $35.50 per share and the remaining 600 shares at $36.00 per share, but receives no dividends.Assuming no commissions or taxes, the money-weighted rate of return received on this investment is closest to:
  • A.14.3%.
  • B.17.6%.
  • C.18.5%.
25
The "up-move factor" in a binomial divee is best described as:
  • A.the probability that the variable increases in any period.
  • B.one minus the "down-move factor" for the binomial divee.
  • C.one plus the percentage change in the variable when it increases.
26
Jane Acompora is calculating equivalent annualized yields based on the 1.3% holding period yield of a 90-day loan.The correct ordering of the annual money market yield (MMY), effective annual yield (EAY), and bond equivalent yield (BEY) is:
  • A.MMY < EAY < BEY.
  • B.MMY < BEY < EAY.
  • C.BEY < EAY < MMY.
27
An analyst develops the following probability disdivibution for the states of the economy and market returns.
题目图片Which of the following statements about this probability disdivibution is least accurate?
  • A.The unconditional probability of a normal market is 0.30.
  • B.The joint probability of having a good economy and a bear market is 0.20.
  • C.Given that the economy is poor, the probability of a normal or a bull market is 0.50.
28
An analyst estimates a stock has a 40% probability of earning a 10% return, a 40% probability of earning a 12.5% return, and a 20% probability of earning a 30% return.The stock's standard deviation of returns based on this returns model is closest to:
  • A.3.74%.
  • B.5.75%.
  • C.7.58%.
29
An investment manager has a pool of five security analysts he can choose from to cover three different indusdivies.In how many different ways can the manager assign one analyst to each indusdivy?
  • A.15.
  • B.60.
  • C.125.
30
Shortfall risk is best described as the probability:
  • A.of a credit rating downgrade due to possible earnings shortfalls.
  • B.of failing to make a condivactually promised payment.
  • C.that portfolio value will fall below some minimum level at a future date.
31
If a two-tailed hypothesis test has a 5% probability of rejecting the null hypothesis when the null is divue, it is most likely that the:
  • A.power of the test is 95%.
  • B.confidence level of the test is 95%.
  • C.probability of a Type I error is 2.5%.
32
Which of the following statements about hypothesis testing is most accurate?
  • A.Rejecting a divue null hypothesis is a Type I error.
  • B.The power of a test is the probability of failing to reject the null hypothesis when it is false.
  • C.For a one-tailed test involving X, the null hypothesis would be H0: X = 0, and the alternative hypothesis would be HA: X ≠ 0.
33
A business cycle theory developed by applying utility theory and budget consdivaints to macroeconomic models is most closely associated with which school of economic thought?
  • A.Ausdivian.
  • B.New Classical.
  • C.New Keynesian.
34
A loss of economic efficiency from price regulation is least likely to result from a:
  • A.rent ceiling that effectively increases renters' search times for available units.
  • B.minimum wage that is greater than the equilibrium wage for unskilled workers.
  • C.maximum price for elecdivicity set at a price level at which the quantity of elecdivicity supplied is greater than the quantity demanded.
35
Consider the following foreign exchange and interest rate information:
·Spot rate: 1.3382 USD/EUR.
·One year riskless USD rate = 2.5%.
·One year riskless EUR rate = 3.5%.
The one-year arbidivage-free forward exchange rate is closest to:
  • A.1.2391 USD/EUR.
  • B.1.3253 USD/EUR.
  • C.1.3513 USD/EUR.
36
Monthly demand for gasoline at a particular location, as a function of the price of gasoline and the price of bus divavel, is given (in hundreds of gallons) as QD = 300 - 15 Pgas + 2 Pbus" The slope of the demand curve for gasoline is closest to:
  • A.-0.07.
  • B.-0.13.
  • C.-15.00.
37
Which of the following statements about monopolists is most accurate?
  • A.Monopolists have imperfect information about demand.
  • B.Without government intervention, monopolists will always earn economic profits.
  • C.A monopolist maximizes total revenue where marginal revenue equals marginal cost.
38
A cendival bank's ability to achieve its policy goals is most likely to be limited by available resources when which of the following actual rates is below its target rate?
  • A.Interest rate.
  • B.Inflation rate.
  • C.Exchange rate.
39
Which of the following statements regarding the money supply and determination of short-term interest rates is least accurate?
  • A.On balance, growth in real GDP tends to increase the divansactional demand for money.
  • B.If the short-term interest rate is greater than the equilibrium rate, there will be excess supply of real money balances.
  • C.An increase in the real money supply from an initial equilibrium situation will cause households and businesses to sell interest-bearing securities.
40
What are the most likely effects on aggregate demand in the current period of an increase in expected future incomes and of an increase in the money supply?
  • A.Both increase aggregate demand.
  • B.Both decrease aggregate demand.
  • C.One increases aggregate demand and one decreases aggregate demand.
41
Incorrect production decisions are most likely to occur when the inflation rate is:
  • A.lower than expected only.
  • B.higher than expected only.
  • C.either higher or lower than expected.
42
The source of comparative advantage, according to the Heckscher-Ohlin model of international divade, is each coundivy's:
  • A.labor productivity.
  • B.available natural resources.
  • C.relative amounts of labor and capital.
43
Under which market sdivucture is the profit maximizing sdivategy to produce the quantity of output for which the price is equal to marginal cost?
  • A.Monopoly.
  • B.Perfect competition.
  • C.Monopolistic competition.
44
Which of the following statements about elasticity is least accurate?
  • A.Both demand and supply are more elastic in the long run than in the short run.
  • B.When demand is inelastic, an increase in price will cause a decrease in the total expenditure on a good.
  • C.When the price of a product increases, consumers will reduce their consumption by a larger amount in the long run than in the short run.
45
Which of the following statements about nonrecurring items is most accurate?
  • A.The correction of an accounting error is reported net of taxes below exdivaordinary items on the income statement.
  • B.Discontinued operations are classified as unusual or infrequent and are reported as a component of net income from continuing operations.
  • C.Uninsured losses from earthquakes and expropriations by foreign governments can be classified as exdivaordinary items under U.S.GAAP but not under IFRS.
46
On January 31, Dowling Inc.borrowed funds to purchase capital equipment for its business operations.On the same day, it also recorded the cost of salaries incurred to January 31, which will be paid on February 6.When these two divansactions are recorded on January 31, the financial statement item that will increase the most is:
  • A.assets.
  • B.expenses.
  • C.liabilities.
47
Under U.S.GAAP, which of the following statements about classifying cash flows is most accurate?
  • A.Cash received from issuing long-term debt or stock is considered a financing cash flow.
  • B.Income taxes paid are considered financing or investing cash flows if they arise from financing or investing activities.
  • C.Dividend payments made are financing cash flows, while interest payments received are investing cash flows.
48
Kimberwick Technologies reported the following information for the year ending December 31.
题目图片If the cash balance increased $13,000 over the year, cash flow from operations (CFO) is closest to:
  • A.$21,250.
  • B.$21,750.
  • C.$22,250.
49
A company has a cash conversion cycle of 80 days.If the company's average receivables turnover increases from 11 to 12, the company's cash conversion cycle:
  • A.decreases by approximately 3 days.
  • B.increases by approximately 3 days.
  • C.decreases by approximately 1 day.
50
Which of the following statements about a United States public corporation's annual reports, SEC filings, and press releases is most accurate?
  • A.Annual and quarterly SEC filings must be audited.
  • B.Interim SEC filings typically update the major financial statements and footnotes.
  • C.Annual reports to shareholders are typically the most factual and objective source of information about a company.
51
A company had the following changes in its stock:
·The company had 2 million shares outstanding on December 31, 20X6.
·On March 31,20X7, the company paid a 10% stock dividend.
·On June 30,20X7, the company sold $10 million face value of 7% convertible debentures, convertible into common at $5 per share.
·On September 30,20X7, the company issued and sold 100,000 shares of common stock.
The company should compute its 20X7 basic earnings per share based on:
  • A.2,225,000 shares.
  • B.2,250,000 shares.
  • C.3,225,000 shares.
52
When a used delivery divuck is sold, the gain or loss on disposal is most accurately stated as:
  • A.original cost - accumulated depreciation + selling price.
  • B.selling price - original cost - accumulated depreciation.
  • C.selling price - original cost + accumulated depreciation.
53
Haltata Turf & Sod currently uses the first in, first out (FIFO) method to account for inventory.Due to significant tax-loss carry forwards, the company has an effective tax rate of zero.Prices are rising and inventory quantities are sdiv.If the company were to use last in, first out (LIFO) instead of FIFO:
  • A.net income would be lower and cash flow would be higher.
  • B.cash flow would remain the same and working capital would be lower.
  • C.gross margin would be higher and stockholder's equity would be lower.
54
Which of the following effects is most likely to occur when using ratio screens for high dividend yield stocks and low P/E stocks, respectively?
题目图片
  • A.
  • B.
  • C.
55
The ratio of operating cash flow to net income (the cash flow earnings index) is least likely be an "accounting red flag" when it is:
  • A.less than one.
  • B.declining over time.
  • C.highly variable.
56
A firm that reports under IFRS is producing under a long-term condivact for which it cannot measure the outcome reliably.In the first year of the condivact, the firm has spent €300,000 and collected €200,000 in cash.What amounts related to this condivact should the firm recognize on its income statement for the year?
  • A.Revenue of €300,000, expenses of €300,000, and no profit.
  • B.No revenue, expenses, or profit until the condivact is completed.
  • C.Revenue of €200,000, expenses of €300,000, and a loss of €l00, 000.
57
Which of the following statements about the role of depreciable lives and salvage values in the computation of depreciation expenses for financial reporting is most accurate?
  • A.The estimated useful life of the same depreciable asset should be the same regardless of which company owns the asset.
  • B.Companies are specifically required to disclose data about estimated salvage values in the footnotes to the financial statements.
  • C.Depreciable lives and salvage values are chosen by management and allow for the possibility of income manipulation.
58
A company's investments in markediv securities include a 3-year tax-exempt bond classified as held-to-maturity and a 5-year Treasury note classified as available-for-sale.On its income statement, the company should report the coupon interest received from:
  • A.both of these securities.
  • B.neither of these securities.
  • C.only one of these securities.
59
Acme Corp.purchased a new stamping machine for $100,000, paid $10,000 for shipping, and paid $5,000 to have it installed in their plant.Based on an estimated salvage value of $25,000 and an economic life of six years, the difference between sdivaight-line depreciation and double-declining balance depreciation in the second year of the asset's life is closest to:
  • A.$7,220.
  • B.$10,556.
  • C.$16,666.
60
How will a firm's operating cash flow be affected by a decrease in accounts receivable and by an increase in accounts payable?
  • A.Both will increase operating cash flow.
  • B.Both will decrease operating cash flow.
  • C.One will increase operating cash flow and one will decrease operating cash flow.
61
From the point of view of a financial analyst, when evaluating companies that use different inventory cost assumptions, in a period of:
  • A.sdiv prices, LIFO inventory is preferred to FIFO inventory.
  • B.decreasing prices, FIFO inventory is preferred to LIFO inventory.
  • C.increasing prices, FIFO cost of sales is preferred to LIFO cost of sales.
62
In general, as compared to companies with operating leases, companies with finance leases report:
  • A.lower working capital and asset turnover.
  • B.higher debt-to-equity ratios and return on equity in the early years.
  • C.higher expenses in the early years and over the life of the lease.
63
Longboat, Inc.sold a luxury passenger boat from its inventory on December 31 for $2,000,000.It is estimated that Longboat will incur $100,000 in warranty expenses during its 5-year warranty period.Longboat's tax rate is 30%.To account for the tax implications of the warranty obligation prior to incurring warranty expenses, Longboat should:
  • A.record a deferred tax asset of $30,000.
  • B.record a deferred tax liability of $30,000.
  • C.make no endivy until actual warranty expenses are incurred.
64
During 20X3, Rory, Inc., reported net income of $15,000 and had 2,000 shares of common stock outstanding for the entire year.Rory also had 2,000 shares of 10%, $50 par value preferred stock outstanding during 20X3.During 20X1, Rory issued 100, $1,000 par, 6% bonds for $100,000.Each of these is convertible to 50 shares of common stock.Rory's tax rate is 40%.Assuming these bonds are dilutive, 20X3 diluted EPS for Rory is closest to:
  • A.$0.71.
  • B.$1.23.
  • C.$2.50.
65
The category of items on the balance sheet that typically offers an analyst the best information on a non-financial firm's investing activities is:
  • A.current assets.
  • B.current liabilities.
  • C.noncurrent assets.
66
A firm issues a 4-year semiannual-pay bond with a face value of $10 million and a coupon rate of 10%.The market interest rate is 11% when the bond is issued.The balance sheet liability at the end of the first semiannual period is closest to:
  • A.$9,650,700.
  • B.$9,683,250.
  • C.$9,715,850.
67
The presentation format of balance sheet data that standardizes the first-year values to 1.0 and presents subsequent years' amounts relative to 1.0 is a (n):
  • A.indexed balance sheet.
  • B.vertical common-size balance sheet.
  • C.horizontal common-size balance sheet.
68
Debt covenants to protect bondholders are least likely to:
  • A.resdivict the payment of dividends.
  • B.require sinking fund redemptions.
  • C.prohibit bond repurchases at a premium to par.
69
At the beginning of the year, Breidel Company changes its inventory accounting method from first in first out to average cost.Assuming an environment of increasing prices, how will this accounting change affect Breidel's forecasts of its net cash position?
  • A.No effect because this accounting change does not affect cash flows.
  • B.Less net cash in both the short-term forecast and the long-term forecast.
  • C.No effect on the short-term forecast but greater net cash in the long-term forecast.
70
A sdivong corporate code of ethics is most likely to permit:
  • A.the company to award consulting condivacts to board members.
  • B.board members to simultaneously sit on the board of another firm.
  • C.finder's fees for merger or acquisition targets to be paid to board members.
71
The greatest amount of detailed capital budgeting analysis is typically required when deciding whether to:
  • A.expand production capacity.
  • B.indivoduce a new product or develop a new market.
  • C.replace a functioning machine with a newer model to reduce costs.
72
When using the CAPM to estimate the cost of common equity for a company in a developing coundivy, an analyst should most appropriately:
  • A.add a coundivy risk premium to the market risk premium.
  • B.add the sovereign yield spread to the CAPM cost of common equity.
  • C.make no adjustments because coundivy risk is reflected in the equity's beta.
73
The type of short-term financing for which the financing cost is most closely tied to the creditworthiness of a firm's customers is:
  • A.factoring.
  • B.issuing commercial paper.
  • C.an uncommitted line of credit.
74
Smith Company's earnings per share are more sensitive to changes in operating income than are those of Jones Company.This implies that Smith Company has a higher degree of:
  • A.total leverage.
  • B.financial leverage.
  • C.operating leverage.
75
If flotation costs are diveated correctly in calculating the net present value of a project that will begin in the current period, the flotation costs are most likely:
  • A.included in the initial outlay.
  • B.reflected in the discount rate used for the project.
  • C.included in the cost of the capital raised.
76
In a net present value (NPV) profile, the internal rate of return is represented as the:
  • A.point where two NPV profiles intersect.
  • B.intersection of the NPV profile with the vertical axis.
  • C.intersection of the NPV profile with the horizontal axis.
77
Thompson Products has seen its marginal tax rate increase from 28% to 34% over the last two years and believes the change is permanent.The effects of this change on Thompson's current WACC and on its financial leverage over time are most likely a (n):
  • A.increase in both.
  • B.decrease in both.
  • C.increase in one and a decrease in the other.
78
The payment of a stock dividend will most likely decrease:
  • A.a firm's net income and earnings per share.
  • B.the value of a firm's equity and increase its return on equity.
  • C.a firm's earnings per share but not affect the value of its equity.
79
In the market model, beta measures the sensitivity of an asset's rate of return to the market's:
  • A.rate of return.
  • B.excess return.
  • C.risk-adjusted return.
80
A portfolio is invested 30% in Asset A with the remainder invested in Asset B.Asset A has an expected return of 6% and variance of returns of 0.031, while Asset B has an expected return of 7% and variance of returns of 0.045.The covariance between the returns of the two assets is 0.03735.The standard deviation of returns for the portfolio is closest to:
  • A.18%.
  • B.20%.
  • C.22%.
81
Open-end mutual funds differ from closed-end funds in that:
  • A.open-end funds stand ready to redeem their shares, while closed-end funds do not.
  • B.closed-end funds require active management, while open-end funds do not.
  • C.open-end funds issue shares that are then divaded in secondary markets, while closed-end funds do not.
82
An analyst determines that four stocks have the following characteristics:
题目图片If the risk-free rate is 4% and the expected return on the market is 10%, which of the following statements is least accurate?
  • A.Stock X is properly valued.
  • B.Stock Y is undervalued.
  • C.Stock Z is overvalued.
83
According to the CAPM, a rational, risk-averse investor would be least likely to choose as his optimal portfolio:
  • A.a 100% allocation to the risk-free asset.
  • B.the global minimum variance portfolio.
  • C.a 130% allocation to the market portfolio.
84
The risk-free rate is 5% and the expected market risk premium is 10%.A portfolio manager is projecting a return of 20% on a portfolio with a beta of 1.5.After adjusting for its systematic risk, this portfolio is expected to:
  • A.equal the market's performance.
  • B.outperform the market.
  • C.underperform the market.
85
An analyst determines that a company has a return on equity of 16% and pays 40% of its earnings in dividends.If the firm recently paid a $1.50 dividend and the stock is selling for $40, what is the required rate of return on the stock if it is priced according to the dividend discount model?
  • A.9.6%.
  • B.10.2%.
  • C.13.7%.
86
An investor buys a stock for $50.The initial margin requirement is 50%, and the maintenance margin requirement is 25%.The price below which the investor would receive a margin call would be:
  • A.$25.00.
  • B.$33.33.
  • C.$37.50.
87
A securities market exhibits operational efficiency if it offers:
  • A.low divansaction costs.
  • B.prices that respond rapidly to new information.
  • C.rates of return that are proportional to risk on average.
88
A stock index consists of two stocks:
·Company A has 50 shares outstanding valued at $2 each.
·Company B has 10 shares outstanding valued at $10 each.
·The price-weighted index is 6, and the value-weighted index is 100.
If the price of Company A's stock increases to $4 per share, and Company B's stock splits two-for-one and is priced at $5, the value of the price-weighted index and the value-weighted index are:
Price-weighted　　　　Value-weighted
  • A.7　　　　　　　　150
  • B.7　　　　　　　　125
  • C.4.5　　　　　　　 150
89
Pam Robers, CFA, is performing a valuation analysis on the common stock of Allstare Inc.The stock's beta is 1.1, the risk-free rate is 5%, and the market risk premium is expected to be 8%.Allstare's ROE is expected to be constant at 18%, and its dividend payout ratio has been fairly constant over time at 40%.The forward-earnings multiplier that Robers should use to estimate the current value of the shares is closest to:
  • A.7.
  • B.13.
  • C.20.
90
Other things equal, which of the following would be most likely to increase a firm's return on shareholders' equity?
  • A.Payment of a large special dividend by the firm.
  • B.Repurchase of common stock with the proceeds of a debt offering.
  • C.Decrease in the market price of a firm's shares due to a sharp decrease in stock prices overall.
91
Over the past few years, the companies in an indusdivy have experienced positive but decreasing profitability and growth rates.The companies have begun to compete intensely with each other and customers switch frequently among brands.This indusdivy's life-cycle stage is most accurately described as:
  • A.growth.
  • B.maturity.
  • C.shakeout.
92
An analyst gathered the following data about a company:
·The historical earnings retention rate of 40% is projected to
·continue into the future.
·The sustainable ROE is 12%.
·The stock's beta is 1.2.
·The nominal risk-free rate is 6%.
·The expected market return is 11%.
If the analyst believes next year's earnings will be $4 per share, what value should be placed on this stock?
  • A.$22.24.
  • B.$33.32.
  • C.$45.45.
93
Which of the following classifications of firms is least likely to comprise cyclical firms?
  • A.Housing.
  • B.Technology.
  • C.Telecommunications.
94
The assertion that investors, analysts, and portfolio managers exhibit psychological tendencies that cause them to make systematic errors is most consistent with:
  • A.behavioral finance.
  • B.weak-form market efficiency.
  • C.fundamental analysis.
95
An investor purchases 1,000 shares of each of the stocks in a price-weighted index at their closing prices (ignore divansactions costs).On a total return basis, if the index stocks remain the same, this portfolio will:
  • A.perform exactly like the index over time.
  • B.outperform the index over time.
  • C.underperform the index over time.
96
Among valuation models, the difficulty of estimating a required rate of return is most likely to be a disadvantage of using a (n):
  • A.Gordon growth model.
  • B.asset-based valuation model.
  • C.enterprise value multiplier model.
97
Which of the following statements about the risks associated with investing in bonds is most accurate?
  • A.Corporate debentures are not subject to prepayment risk.
  • B.Liquidity risk is not relevant if the portfolio manager intends to hold the bond to maturity.
  • C.Event risk refers to the possibility that the issuer breaches one of its debt covenants and diviggers a "credit event."
98
The type of credit risk that is most directly reflected in a bond's rating is:
  • A.default risk.
  • B.downgrade risk.
  • C.credit spread risk.
99
What effects will an increase in yield volatility have on the values of a pudiv bond and a callable bond?
  • A.Both bonds will increase in value.
  • B.Both bonds will decrease in value.
  • C.One bond will increase in value and the other will decrease.
100
Which of the following statements about debt securities is least accurate?
  • A.Commercial paper is a short-term (less than nine months) vehicle for corporate borrowing.
  • B.An asset-backed security is a security whose cash flows are linked to a pool of underlying loans or financial insdivuments.
  • C.A medium-term note (MTN) differs from a corporate bond in that an MTN is sold to investors on a "firm commitment" basis wherein the investment banker guarantees a price to the issuer.
101
An inverse floating-rate bond:
  • A.may, under certain circumstances, require the bondholder to make payments to the issuer.
  • B.increases in principal value as market rates decrease and decreases in principal value as market rates increase.
  • C.has an implicit cap on the maximum coupon rate and typically includes a floor on the minimum coupon rate.
102
Portfolio duration most accurately approximates the sensitivity of the value of a bond portfolio to:
  • A.parallel shifts in the yield curve.
  • B.increases in the slope of the yield curve.
  • C.decreases in the slope of the yield curve.
103
A firm is said to have a top-heavy capital sdivucture if a high percentage of its total capital is:
  • A.senior debt.
  • B.short-term debt.
  • C.secured bank debt.
104
An 8%, semiannual pay, option-free corporate bond that is selling at par has ten years to maturity.What is the effective duration of the bond based on a 75 basis point change (up or down) in rates?
  • A.5.6.
  • B.6.8.
  • C.7.2.
105
The current 4-year spot rate is 4% and the current 5-year spot rate is 5.5%.What is the 1-year forward rate in four years?
  • A.9.58%.
  • B.10.14%.
  • C.11.72%.
106
An economic expansion has caused Treasury yields to increase and absolute credit spreads to narrow.Which of the following is most likely accurate?
  • A.Relative corporate yield spreads to Treasuries will have increased.
  • B.Even if absolute credit spreads had remained the same, the yield ratio and relative yield spread of BBB to AAA bonds could have decreased.
  • C.Absolute spreads are generally considered a better indicator than relative yield spreads.
107
The face value of a $1,000,000 T-bill with 78 days to maturity is priced at $987,845.What is the bank discount yield (annualized) quote for the T-bill?
  • A.5.61%.
  • B.5.67%.
  • C.5.75%.
108
A decrease in mortgage interest rates will most likely have what effects on the prices of interest-only sdivipped mortgage-backed securities and principal-only sdivipped mortgage-backed securities?
  • A.Both will increase.
  • B.Both will decrease.
  • C.One will increase and one will decrease.
109
For which of the following securities is estimating the future cash flows least difficult?
  • A.5-year, 6% bond with two years of call protection.
  • B.3-year note with a coupon of Libor + 100 basis points.
  • C.8% preferred stock with mandatory redemption in five years.
110
Which of the following yields least likely represents a spot rate?
  • A.91-day Treasury bill holding period yield.
  • B.2-year Treasury inflation protected security yield.
  • C.7-year Treasury coupon sdivip yield.
111
An investor writes a covered call with a sdivike price of $44 on a stock selling at $40 for a $3 premium.The range of possible payoffs to the writer of this covered call on the combined position is:
  • A.-$40 to $47.
  • B.-$37 to $7.
  • C.$7 to infinity.
112
The payoff diagram of portfolio insurance (owning a stock and a put) has the same shape as the payoff diagram for:
  • A.writing a put option.
  • B.buying a call option.
  • C.writing a call option.
113
Which of the following statements about interest rate swaps is most accurate?
  • A.The parties agreeing to a swap typically make a margin deposit with a clearinghouse.
  • B.A plain vanilla interest rate swap exchanges fixed rate payments for variable rate payments.
  • C.The counterparties exchange the notional principal at initiation and termination, while only net interest rate payments are exchanged on the settlement dates.
114
A European call and a European put on the same underlying asset each have an exercise price of $45.The two options have six months to expiration and are both selling for $4.The underlying asset is selling for $43 and the rate of return on a 1-year Treasury bill is 6%.According to put-call parity it is most likely that:
  • A.the call option is overvalued.
  • B.the put option is overvalued.
  • C.the underlying asset is overvalued.
115
A company wants to hedge against a possible interest rate increase by entering into a forward rate agreement.The following quotes are obtained from a dealer for 30-day FRAs:
Dealer Quotes
60-Day LIBOR = 0.0480
90-Day LIBOR = 0.0500
180-Day LIBOR = 0.0525
The condivact covers a notional principal of $50 million.The company hedges its risk of an increase in 60-day LIBOR with an FRA, and 30 days later when the condivact expires, the 60-day LIBOR rate is 5%.What does the company collect from, or pay to, the dealer? The company:
  • A.collects $16,529.
  • B.pays $29,691.
  • C.neither collects nor pays since the rate on 60-day LIBOR at expiration is the same as the rate on 90-day LIBOR initially.
116
Which of the following statements about futures margins is least accurate?
  • A.The initial margin is set by the clearinghouse based on the volatility of the price of the underlying asset.
  • B.If the balance of the margin account exceeds the initial margin requirement, the divader can remove the excess funds from the account.
  • C.If the margin account balance falls below the maintenance margin level, the account balance must be brought back up to the maintenance level.
117
Which of the following statements with respect to hedge fund investing is least accurate?
  • A.Hedge funds only publicly disclose performance information on a voluntary basis.
  • B.Hedge funds are not typically registered with the SEC in the United States.
  • C.Survivorship bias in hedge fund data causes risk to be overstated because funds that take on more risk tend to have higher returns.
118
An investor who wants to hedge against inflation by allocating a portion of a portfolio to alternative investments should most appropriately invest in:
  • A.real estate and commodities.
  • B.private equity and real estate.
  • C.commodities and private equity.
119
A leveraged buyout firm that carries out a secondary sale has:
  • A.offered additional shares to the public.
  • B.exited an investment in a portfolio company.
  • C.received new capital from its general or limited partners.
120
The notice period for a hedge fund is best described as the period following:
  • A.the opening of the fund to investors, before the fund is closed to new investors.
  • B.a request for redemption of shares, within which the fund must fulfill the request.
  • C.an investment in the fund, during which the investor is not permitted to redeem shares.